A Senate committee is investigating if a popular sweepstakes
is misleading consumers.

The Senate Special Committee on Aging has issued a 259-page
report on Publishers Clearing House sweepstakes, saying solicitations from the
company "push the limits" of federal law. At issue are claims the company is
misleading consumers, especially senior citizens, by giving them the impression
they have won or are close to winning a prize or that they can improve their
chances of hitting the jackpot by buying products or subscriptions.

"I'm all for folks
winning prizes but it concerns me when seniors still report they're being
misled by Publishers Clearing House," said Sen. Bill Nelson, D-FL, who along
with Ranking Member Susan Collins, R-ME, headed up the investigation.

"If people are
concluding that they have to buy something to enter or win the sweepstakes,
then we need to make sure that gets corrected."

Publishers Clearing House has long been criticized for
promotions that promise big cash prizes alongside offers for merchandise
such as magazine subscriptions. Senators pointed to several examples in the
study, including:

Solicitations that incorporated maps of the recipient's
neighborhood, along with a statement that a prize is "approved for delivery."

Letters accompanied
by "Stay Rich Tips for New Winners" inserts which tell recipients to "buy and
spend smart" and to "contact a reputable accountant or financial advisor."

Envelopes used for
mailing in sweepstakes entries that include detachable notices that read:
"Oops! Did you forget to place an order?"

Various warnings that appear when a consumer is entering a
sweepstakes online, including "Order History Review: No Order Ever Placed" and
"Wait! We See That You Are Not Placing
an Order!"

Company has paid $55.5 million in fines and restitution
since 2000

In 1999, Senate investigations into deceptive sweepstakes
mailing and promotions by Publishers Clearing House and other companies led to
the enactment of the Deceptive Mail Prevention and Enforcement Act. The law required companies to include the
odds of winning a prize, the rules of the contest, and a statement that no
purchase is necessary into all mailings.

Since 2000, Publishers Clearing House has paid about $55.5
million in fines and restitution in connection with allegations it mislead
customers.

Senators said they are concerned that, even as the number of
mailed solicitations has declines, the company's online communications have
increased. Those communications aren't covered by the Deceptive Mail Prevention
Act.

"This law has been
very successful in protecting consumers against deceptive mailing practices.
Given the significant shift in recent years to electronic communications,
however, it may be time to consider updating this legislation to cover e-mail
and online communications," Collins said.